Should I refinance FHA mortgage

Should I refinance FHA mortgageShould I refinance FHA mortgage
Terrylen asked 4 years ago

I was looking to refinance the mortgage to eliminate the mortgage insurance. Unfortunately, the appraisal came below 20%. The credit union is offering a FHA mortgage at a rate of 3.25%.

 

Current FHA mortgage at 5.375%

PRINCIPAL & INTEREST: $ 2,171.83  

ESCROW: $ 746.75 (which includes mortgage insurance of $ 159.83 per month)

TOTAL MONTHLY PAYMENT: $ 2,918.58

Current balance is $ 348,000.00

 

Refinance

FHA mortgage at a rate of 3.25%.

PRINCIPAL & INTEREST   $ 1,609.66  

ESCROW: $ 795.37 (which includes mortgage insurance of $ 240.12 per month)

TOTAL MONTHLY PAYMENT: $ 2,405.03

Estimate closing cost and prepaid costs will be about $ 12,000. This is without the mortgage insurance premium of $ 6361.25.

 

I’m not sure this is the right move. Let me know what you think.

 

Register New Account
Reset Password